The aggregate supply curve is
a. vertical in the short run
b. horizontal in the short run
c. the sum of all of the supply curves of individual firms in the economy
d. downward sloping in the short run
e. upward sloping in the short run
E
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Major U.S. exports include automobiles and aircraft
Indicate whether the statement is true or false
If you buy something with a gift card that you would never buy with your own money, you are exhibiting ______ behavior.
a. anchoring b. compartmentalizing c. framing d. gambling
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
In a recessionary expenditure gap, the equilibrium level of real GDP is
A. greater than planned aggregate expenditures. B. greater than full-employment real GDP. C. less than planned aggregate expenditures. D. less than full-employment real GDP.